Castleforge has partnered with full-service data centre operator and advisory firm Galaxy Data Centers to acquire Redhill Data Centre for more than £100m.
The acquisition of the facility, which was funded by ICG Real Estate, marks Castleforge’s debut in the data centre sector.
Located in Foxboro Business Park, the Redhill Data Centre campus comprises 11,800 sq m (circa 127,000 sq ft) across three buildings and offers 26MVA of power.
Castleforge and Galaxy intend to significantly expand the capacity of the data centre to meet growing demand for digital infrastructure driven by advancements in AI and hybrid cloud computing.
Adam MacLeod, partner at Castleforge, said: “Data centres have been an attractive prospect that we have been monitoring for some time, but with advancements in AI and cloud computing accelerating demand, we have been eager to find the right opportunity in which to invest. The sector also fits within our speciality of operational real estate investment, and we see this as a logical extension to our existing capabilities.
“Redhill Data Centre’s proximity to London means it offers an important hub for digital services that require fast connections to the capital. With no sign of digital innovation slowing down, we felt this was the right time to make a financial commitment to the market and believe there will be significant further opportunities to come.”
Paul Leong, chief financial officer at Galaxy Data Centers, added: “Redhill presents a rare opportunity to acquire a high-performing data centre in the prime London market, with strategic potential for expansion in both power and scale. We see tremendous growth potential to expand the facility’s power capacity and grow Redhill’s customer relationships. We are dedicated to enhancing the service and experience for all Redhill’s customers throughout this transition and beyond.”
Dave Misra, managing partner at Galaxy Data Centers, said: “Redhill, with its robust 26MVA capacity, is fully equipped to meet customers’ immediate needs. Looking ahead, we are exploring a 10-15MW build-to-suit expansion to ensure we can deliver the scale, density, and power to meet edge, hyperscale and enterprise customer needs of tomorrow in this rapidly evolving digital landscape.”
